If you follow the local news or our local real estate market, then perhaps you know that the New Orleans metro area housing market is booming. Supply is low, demand is high, and some sellers are getting multiple offers within a day of listing their home.
It’s not clear how long this boom will last, but two factors to watch are whether more sellers start to list their homes in the months ahead as the pandemic’s impact fades, and whether the Federal Reserve raises interest rates rise to counter an overheating post-Covid economy. For context and analysis on the current market, I invite you to peruse the charts and my commentary below. And as always, if you’d like expert real estate assistance in the New Orleans market, don’t hesitate to contact me.
Demand for homes in the New Orleans metro region is currently very strong. Closed sales for single-family homes in the region are up fifteen percent from April 2020 to April 2021.
And prices for single-family homes in the New Orleans metro region are rising. In fact, as shown in the chart below, the average sold price of a single-family home in the New Orleans Metro Region increased eleven percent from April of 2020 to April of 2021.
Undoubtedly this strong demand and the rapid price increases we’re seeing are driven by a variety of factors, but perhaps the most important factor is the very low levels of housing inventory in the New Orleans metro region – there are fewer homes for sale right now in the New Orleans metro region than there have been at any time in the last ten years.
And these data points for housing supply and demand in the New Orleans metro region are, as you would expect, mirrored throughout individual neighborhoods in the City. In Metairie, for example, the average sale price of single-family homes is up twelve percent from April of 2020 to April of 2021.
And also in Metairie, the number of homes for sale is at a ten year low.
In Orleans Parish, the average sale price is up nine percent from April of 2020 to April of 2021.
And likewise in Orleans Parish, the supply of homes for sale is at a ten year low.
The one exception to this rule of high demand and low supply in the New Orleans housing market is the condo market, particularly the downtown condo market in the Central Business District, the Warehouse District, and the French Quarter. In those neighborhoods, the market is favorable to buyers because of high levels of condo supply.
But even these markets with high levels of condo inventory have begun to see an uptick in sales with the new year. And as more people are vaccinated and events and tourism returns to the City, this trend of increasing condo sales is likely to continue.